As the Embedded World Exhibition and Conference takes place this week in Nuremberg, Germany, the electronics industry can breathe a sigh of relief that the embedded sector has held its own during downturn in the electronics industry. More important, embedded systems will remain a key growth area over the next decade, according to a recent study by Market.USÂ And expect more of them within the next decade, according to
The study expects the global embedded system market, which was $91.3 billion in 2022, to reach $173.4 billion by 2032,  growing at 6.8% CAGR. Â
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Market.US projects the embedded systems market to reach $173.4 billion by 2032.
Key Takeaways
Here are some takeaways from the study:
- By component, in 2022, the Hardware segment has generated the highest revenue share.
- By application, the communication segment has dominated the market and it is expected to grow at the highest CAGR over the forecast period 2023 to 2032.
- In 2022, North America dominated the market with the highest revenue share of 34%.
Technological advancements and a decrease in the cost of microcontroller units are also anticipated to benefit the market during the forecast period. Embedded systems are used in many end-user industries with rising demand from healthcare and consumer electronics areas expected  to help fuel embedded system market growth.
Market Drivers
According to the study, some factors driving the growth of embedded systems include:
- Growing demand for multi-core embedded systems.
- Intensifying competition, as manufacturers integrate more processors and microcontrollers into their products to add more as competition intensifies in the consumer electronics market.
- Demand for products like smart power meters.
- Automation applications are increasingly taking advantage of embedded systems advances, whether they are in manufacturing or the automotive sector.Â
- Embedded technology is finding its way into ADAS technology in electric and hybrid vehicles.
.All Global Regions Growing
According to the study, North America dominates the embedded systems market with a market share of 34% and will continue to lead during the forecast period. This is due to increased demand for connected and smart devices and various manufacturers in the region.
The Asia-Pacific market is going to witness significant growth during the forecast period. The Europe region is expected to follow the Asia-Pacific and North America regions during the forecast period. Europe could soon capture a large market share in embedded systems, due to the rapidly developing automotive sector in the region that use embedded systems.
Component Insight
Based on components, the hardware segment dominated the embedded systems market. In the hardware segment, the microcontroller captured the highest market share. Segment growth is driven by the continued use of microcontrollers in implantable medical devices, automotive engines, and others. With Increasing automation in every industry, the requirement for microcontrollers is increasing. Â
The software segment in embedded systems is used to control specific, limited functions of hardware devices and usually does not require input. The software segment is expected to grow at an exponential growth rate with the increasing demand for software applications for the growing hardware segment.